Thoughts on daughter's spending

[LivingAlmostLarge]

Most people haven't ever seen a statement until they get one and have already maxed out their $2k first college card.

[disneysteve]

Most people haven't ever seen a statement until they get one and have already maxed out their $2k first college card.

Exactly why we've chosen to educate her NOW.

[LivingAlmostLarge]

Funny that people think CC are evil. Problem lies in their usage. And yet there are many people who don't have one or abuse it yet the average debt is still $8k. About 60% of people PIF or don't have CC in US, so the 40% who do abuse them a lot.

[disneysteve]

Funny that people think CC are evil.

I agree. I always debate that issue. I think CCs are an incredible financial tool that everyone should learn to use to their full advantage. Our CC charges last year totaled about $32,000. Even with a 1% reward rate, that would be $320 back in rewards. In reality, our rewards were closer to $600 due to 5% promos with Discover, 2% on dining out with Marriott and 5% on Marriott hotel stays. We are doing 10 free nights in New Hampshire this summer on Marriott points. Doesn't sound evil to me.

[cschin4]

steve - I have kids that age and it is tough sometimes to watch them fritter away their money. I do give my kid's an allowance not tied to chores. I do expect them to do some basic chores as part of family maintenance such as making their beds, vacuuming, cleaning, etc. I will offer them chores that I will pay for such as washing my car, etc. Funny, but most of the time they say "no". I really just don't see the need to take a hard line approach either way. And, there are times I just want to buy them stuff as well. And, other times I will tell them they are on their own and will have to use their own money if they wish to purchase whatever it is that catches their eye.
My 2 sons are complete opposites in the money dept. My oldest son will spend every nickel as soon as he gets it. As a result he is always "broke", he is 11. My 9 year old son is a saver/planner. He saves money and then goes and buys exactly what he wants. So, I do see that he seems to get much more satisfaction in his purchases whereas the first son gets some instant gratification but is then dissatisfied.
But, I used to try to talk them out of purchases, etc. However, these are lessons they really need to learn themselves. If her allowance is her money, then let her spend it on what she pleases. But, if you think she is spending too much, then maybe you are giving her too much for an allowance or you need to just give her an allowance but could also teach her a little bit about saving/investing as well. At this age, learning to invest and save is really not in their nature. And, as you know young pre-teen brains really are not capable of thinking into the future. Now is what matters to them.
So, in short, don't worry too much about it. What difference does it make whether she is buying clothes, toys, electronics, makeup, jewelry, etc? None of it will be used for very long anyway.

[disneysteve]

If her allowance is her money, then let her spend it on what she pleases. But, if you think she is spending too much, then maybe you are giving her too much for an allowance

I don't think she's getting too much now. What I think happened along the way is that early on, she was probably getting more than she needed and honestly, mom and I weren't great about making her use her money for things, so her savings built up. Now, she is starting to spend her money more consciously and we are making sure to deduct anything we front her from her account. I think/hope as she sees her balance falling, she may start paying a little more attention to her spending. At her age, $250 sounds like a ton of money when most things she wants are less than $20 or even less than $10. I think it will self-correct along the way.

[cschin4]

Yes, I sometimes think we get too worked up about these things. And, even if she does see her balance falling, she may or may not take note. At this point, she is probably much more interested in the things her peers like.

[disneysteve]

A little victory today. One of the items that prompted this thread was a Naruto headband she bought a while back. It was $19.99 plus shipping. She did use it, wore it quite a bit actually, but recently announced that it really wasn't the one she wanted and she was going to buy a different one, so another $19.99 plus shipping.

I told her to wait and let me look into it first. I briefly browsed ebay and found a variety of options, all cheaper than that. Tonight after dinner, we sat down at the computer together and looked at the alternatives on ebay. She ended up picking one that came to $9.49 total, including shipping, so she saved about $15 or so. Plus, according to her (I don't watch the show), the one she ended up buying actually looks more authentic than the more expensive one.

[Joan.of.the.Arch]

This seems like a timely point to mention that I enjoy your siggy bemoaning paying for your daughter's education when she already knows everything.

Sounds to me that you are finding just the right ways and times to expand on your daughter's understanding about money. No doubt she is doing just fine.

I had to go to Wikipedia to find out what Naruto is. Ah, we all have things we can learn. Personal finance, Japanese cartoons...It's all baffling to one or another of us.